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Avation (GB:AVAP)
LSE:AVAP

Avation (AVAP) AI Stock Analysis

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GB

Avation

(LSE:AVAP)

Rating:68Neutral
Price Target:
176.00p
▲(10900.00%Upside)
Avation's strong valuation and positive technical indicators support a robust outlook. Despite financial performance challenges with leverage and revenue volatility, operational improvements and strategic cash flow management enhance the company's potential for growth.

Avation (AVAP) vs. iShares MSCI United Kingdom ETF (EWC)

Avation Business Overview & Revenue Model

Company DescriptionAvation PLC, together with its subsidiaries, leases commercial passenger aircraft to airlines worldwide. As of June 30, 2021, the company owned and managed a fleet of 44 aircraft. It is also involved in the financing business. The company was founded in 2006 and is headquartered in Singapore.
How the Company Makes MoneyAvation makes money primarily through the leasing of its aircraft to airlines. The company generates revenue by charging lease rentals, which are typically structured as long-term agreements, providing predictable and stable cash flows. Additionally, Avation earns money through the sale of aircraft and possibly provides ancillary services related to fleet management. Key factors contributing to its earnings include the demand for air travel, the company's ability to acquire and maintain a modern fleet, and its relationships with airline customers. Significant partnerships with aircraft manufacturers and financiers also play a crucial role in supporting its operations and financial performance.

Avation Financial Statement Overview

Summary
Avation's financial performance shows improved operational efficiency with positive net profit margins and strong cash flows, which provide resilience. However, revenue volatility and high leverage pose challenges.
Income Statement
65
Positive
Avation's revenue has shown volatility, with a decline in recent years, impacting its growth trajectory. Gross profit margins have been negative, indicating potential challenges in cost management. However, the company has improved its EBIT and EBITDA margins, showing operational efficiency gains. Net profit margin has turned positive, reflecting improved profitability.
Balance Sheet
58
Neutral
The company has a high debt-to-equity ratio, indicating significant leverage, which could pose a risk in adverse economic conditions. However, its return on equity has improved, and the equity ratio suggests a moderate level of equity financing. Overall, the balance sheet reflects a leveraged position with some positive equity performance.
Cash Flow
72
Positive
Avation has demonstrated strong operating cash flow relative to net income, indicating good cash generation capabilities. Free cash flow has shown substantial growth, enhancing financial flexibility. Despite high financing cash outflows, the positive cash flow metrics provide a strong foundation for future investments.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue100.64M89.48M93.65M109.84M110.79M138.50M
Gross Profit100.64M-3.83M-14.31M3.05M4.24M34.65M
EBITDA90.99M29.70M20.48M40.80M79.44M103.24M
Net Income29.41M19.73M12.19M17.13M-84.89M9.71M
Balance Sheet
Total Assets1.08B1.14B1.18B1.22B1.28B1.42B
Cash, Cash Equivalents and Short-Term Investments82.62M34.31M128.14M122.89M122.47M114.58M
Total Debt638.44M675.50M755.98M828.13M947.64M1.07B
Total Liabilities835.39M885.92M937.96M989.93M1.13B1.19B
Stockholders Equity245.65M256.39M241.63M227.09M156.94M220.95M
Cash Flow
Free Cash Flow103.13M81.56M48.38M54.46M62.18M29.77M
Operating Cash Flow91.09M81.57M48.39M54.48M62.28M88.51M
Investing Cash Flow-27.23M13.21M38.52M65.62M20.08M-58.74M
Financing Cash Flow-75.14M-96.03M-97.36M-109.90M-92.59M-56.17M

Avation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.60
Price Trends
50DMA
1.51
Positive
100DMA
1.48
Positive
200DMA
1.51
Positive
Market Momentum
MACD
0.02
Positive
RSI
66.21
Neutral
STOCH
71.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVAP, the sentiment is Positive. The current price of 1.6 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.51, and above the 200-day MA of 1.51, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 66.21 is Neutral, neither overbought nor oversold. The STOCH value of 71.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVAP.

Avation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£132.00M2.8646.48%13.64%
68
Neutral
£106.54M4.8912.33%0.31%8.36%
65
Neutral
$10.75B15.695.29%1.89%3.09%-27.41%
GBAA4
55
Neutral
£151.08M-0.02%13.89%-5.22%-100.30%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVAP
Avation
1.60
0.26
19.40%
GB:AA4
Amedeo Air Four Plus
0.58
0.25
75.76%
GB:DNA3
Doric Nimrod Air Three
60.50
13.55
28.86%

Avation Corporate Events

Other
Avation PLC Director Increases Shareholding
Positive
Jul 4, 2025

Avation PLC announced that Mark Stephen Shelton, an executive director, has acquired 1,340 ordinary shares off-market, increasing his total holdings to 24,840 shares, representing 0.04% of the company’s issued share capital. This transaction highlights insider confidence in the company’s prospects and may positively influence stakeholder perceptions regarding Avation’s market positioning.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Avation PLC Reports Stable Trading Performance Amid Global Air Travel Growth
Positive
Jul 4, 2025

Avation PLC announced a trading update indicating stable performance in line with market expectations. The company received a B1 Corporate Family Rating from Moody’s, reflecting a stable outlook. The global air travel market is experiencing growth, particularly in the Asia-Pacific region, which benefits Avation due to its concentrated fleet and customer base there. Despite supply chain constraints affecting new aircraft deliveries, Avation has managed to maintain strong aircraft valuations and lease rates. The company has also made strategic moves, including selling and acquiring aircraft, to optimize its fleet and reduce debt. Avation is actively managing its financials, with significant debt reduction and share repurchases, and is exploring refinancing options for its existing liabilities.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and Strategy
Avation PLC Announces Change in Major Shareholder Holdings
Neutral
Jul 4, 2025

Avation PLC has announced a change in its major holdings, with Rangeley Capital LLC and Jeremy Michael Kersten Raper acting in concert to hold a combined 13.92% of voting rights in the company, down from a previous 14.89%. This adjustment in holdings could influence Avation’s strategic decisions and stakeholder engagement, as it reflects a shift in the company’s shareholder structure.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Regulatory Filings and Compliance
Avation PLC Cancels Treasury Shares, Updates Voting Rights
Neutral
Jul 4, 2025

Avation PLC has announced the cancellation of 8,361,500 ordinary shares held in treasury, resulting in a total of 66,588,757 ordinary shares in issue with no shares held in treasury. This change affects the total number of voting rights, which shareholders can use to determine their required notifications under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Receives First-Time Moody’s Credit Rating
Positive
Jul 2, 2025

Avation PLC has been assigned a first-time B1 Corporate Family Rating and a B2 issuer rating with a stable outlook by Moody’s Ratings. This development, advised by HSBC, may enhance Avation’s credibility and attractiveness in the aircraft leasing industry, potentially impacting its operational dynamics and stakeholder relations positively.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avation PLC Secures New Lease Agreement with PNG Air
Positive
Jul 2, 2025

Avation PLC has signed a six-year lease agreement with PNG Air for an ATR 72-600 aircraft, which is currently leased to Mandarin Airlines. This transition, scheduled for the fourth quarter of 2025, strengthens Avation’s relationship with PNG Air and enhances its position in the aircraft leasing industry.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Other
Avation PLC Announces Change in Major Shareholder Voting Rights
Neutral
Jun 24, 2025

Avation PLC has announced a change in the voting rights held by Rangeley Capital LLC and Jeremy Michael Kersten Raper, who are acting in concert. The total voting rights have decreased from 15.94% to 14.89%, reflecting a disposal of voting rights. This change may impact the company’s shareholder dynamics and influence in decision-making processes.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Product-Related AnnouncementsFinancial Disclosures
Avation PLC Announces Profitable Aircraft Sales Amid Strong Market Demand
Positive
Jun 12, 2025

Avation PLC has announced the sale of a Boeing 777-300ER and a new ATR72-600 at prices above their book value, highlighting the robust demand for modern commercial aircraft. The company also revealed a favorable difference of approximately US$82 million between third-party market appraisals and its book value for its fleet, excluding the Boeing 777-300ER, indicating strong market positioning and potential financial benefits for stakeholders.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avation PLC Profits from Sale of ATR 72-600 Aircraft
Positive
Jun 12, 2025

Avation PLC has announced the successful delivery and sale of a new ATR 72-600 aircraft to a Caribbean airline, marking the second sale from a series announced in May 2024. This transaction, which generated approximately US$5 million in net cash proceeds, underscores the strong market demand for ATR turboprop aircraft and Avation’s strategic decision to capitalize on favorable market conditions. The proceeds from the sale may be used to reduce the company’s debt, enhancing its financial position.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avation PLC Completes Profitable Sale of ATR Aircraft
Positive
Jun 12, 2025

Avation PLC has successfully completed the sale of a new ATR 72-600 aircraft to a Caribbean airline, marking the second sale in a series announced in May 2024. This transaction, which generated approximately US$5 million in net cash proceeds, underscores the robust demand for ATR turboprop aircraft and highlights Avation’s strategic flexibility in leveraging market opportunities to strengthen its financial position.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and Strategy
Avation PLC to Sell Boeing 777-300ER, Enhancing Fleet Strategy
Positive
Jun 11, 2025

Avation PLC has announced an agreement to sell a Boeing 777-300ER aircraft, currently leased to Philippine Airlines, capitalizing on strong asset valuations post-COVID. The sale is expected to generate a significant profit above book value, releasing approximately US$33 million in net cash proceeds after debt repayment. This cash will be used to reduce debt and potentially reinvest in high-quality narrowbody aircraft, enhancing fleet resilience and diversification. The transaction is anticipated to complete in the third quarter of 2025, aligning with Avation’s strategy to optimize its fleet’s risk profile and reduce leverage.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Continues Strategic Note Repurchase Program
Positive
May 9, 2025

Avation PLC has announced its continued commitment to repurchasing Avation Capital S.A. Senior PIK Toggle Notes due 2026 as part of its global medium-term note program. The company will provide quarterly updates on the repurchases, with immediate announcements for significant transactions, reflecting its strategic financial management and potential impact on its financial stability and stakeholder confidence.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Repurchases Senior Notes to Optimize Financial Strategy
Neutral
May 6, 2025

Avation PLC has repurchased US$3.5 million of its Senior PIK Toggle Notes due 2026, acquired at 97.5% of face value, and will cancel them, leaving US$320 million in outstanding notes. This move reflects Avation’s ongoing financial management strategy, potentially impacting its debt profile and signaling a focus on strengthening its balance sheet.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Repurchases Senior Notes to Optimize Financial Structure
Positive
Apr 29, 2025

Avation PLC has repurchased US$1.94 million of its Senior PIK Toggle Notes due 2026 at 97.50% of face value, reducing the outstanding notes to approximately US$324.6 million. This strategic move is likely to impact the company’s financial structure and could influence its market positioning by potentially improving its debt profile.

Stock BuybackBusiness Operations and Strategy
Avation PLC Repurchases Shares, Adjusts Voting Rights
Neutral
Apr 28, 2025

Avation PLC has repurchased 25,000 ordinary shares at 150 pence per share, which will be held in treasury, affecting the total number of voting rights in the company. This transaction highlights Avation’s strategic financial management, potentially impacting shareholder calculations under the FCA’s rules.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Repurchases Senior Notes to Strengthen Financial Position
Positive
Apr 17, 2025

Avation PLC has repurchased US$3 million of its Senior PIK Toggle Notes due 2026, at 97.50% of face value, under its global medium term note programme. This move reduces the outstanding notes to US$326,555,981, potentially strengthening Avation’s financial position and demonstrating its commitment to managing debt effectively.

Product-Related AnnouncementsBusiness Operations and Strategy
Avation PLC Enters South American Market with New Lease Agreement
Positive
Apr 9, 2025

Avation PLC has announced a new six-year lease agreement with Colombian airline Clic Air for an ATR 72-600 aircraft, marking the company’s entry into the South American market. This strategic move is expected to enhance Avation’s growth and expand its market presence, while establishing a new customer relationship with Clic Air.

Business Operations and Strategy
Avation PLC Grants Share Warrants to Boost Employee Incentives
Positive
Apr 8, 2025

Avation PLC has announced the grant of 565,000 share warrants to its directors and employees as part of its long-term incentive plan. These warrants, issued at an exercise price of 132 pence per share, are designed to align with the company’s Remuneration Policy and will vest over three years. This move is expected to enhance employee engagement and align the interests of the staff with those of the shareholders, potentially impacting the company’s operational dynamics and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025